Cryptocurrencies provide many possibilities. The transaction, for example, is very straightforward, and it is also more confidential than the traditional banking system. The transaction fees are not as expensive as what banks require.
There are no transferring funds and other surprises along the way. Access to credit is greater than you have ever thought as long as you have a viable data connection and a reliable program like Financial transparency.
That’s not all. The international trade is easier than expected. Although it is not largely recognized, crypto, by nature, is not subject to interest rates, transaction charges, exchange rates, and other expenses.
With that, cross-border transactions and the transfer will be simpler than expected. Individual ownership has also been associated with the crypto market. In a credit card system and other traditional banking systems, clients turn the stewardship of their funds to a third party. In case of infringements, your account might be closed.
In cryptocurrency, however, you are the sole owner of your digital wallet. You are also given public or private encryption keys, making up your crypto network identity. No wonder why crypto users are around 40 million. Plus, the number is expected to double in the coming years.
However, there are obstacles and challenges to note. Some of them are highlighted below:
Lack of Regulation
Economists say the lack of regulation in cryptocurrency inhibits global adoption and trust.
For example, the widespread scams in the crypto world or supply of drug-themed crypto affect some legitimate projects. As a result, this discourages potential adopters.
Strict and global regulation can address this never-ending problem, according to experts. Currently, global cryptocurrency regulations have been implemented. Thankfully, many countries strive to establish crypto regulation that would help build a better future.
A Balance of Trust and Privacy
Many people are tempted to look at crypto technology as a source of truth. Researchers note that stakeholders want a higher level of privacy.
This has led to a conflict with regulatory expectations. Regulators in the United States start to size up the shape of the problem while Japanese authorities bring the hammer down on privacy coins.
Of course, most mediums of exchange, including prepaid debit cards, are anonymous. As a result, transparency is a bigger obstacle to blockchain adoption compared to privacy.
How to fix this problem? Creating a system that delivers different levels of privacy can play a critical role.
Volatility is another obstacle in the crypto market. Unlike the conventional banking system, the volatility in crypto assets is high. It can relatively affect perceptions or even impact their use in different transactions, according to researchers.
Who doesn’t want a crypto with speed, decentralization, and security? Of course, everyone loves that. But not all crypto has all these features. Some only have two, while others have one.
Ether and bitcoin, for instance, opt for decentralization and security. So, they are slow and might be impractical for global adoption. But it depends.
According to critics, blockchain technology cannot support and even meet the needs of the global economy due to its less scalable and slower system.
The solution here is to wait for new developments and innovations in the future. That is why we really have to be patient.
Generally, cryptocurrency is limited to tech-savvy individuals, according to economists, which affects global trust and adoption.
Also, it affects individual users. They might encounter some trouble maintaining their multiple wallets.
At present, it doesn’t have solutions. Similar to scalability obstacles, this problem might be fixed thru time. So, let’s expect for the best soon. We hope economists and other experts will develop something that would change the crypto industry.